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How to Read Candlestick Charts

A complete professional guide for Veezna Trading Training Program

What Are Candlestick Charts?

Candlestick charts are the most popular way to visualize price movements in the stock, forex, and crypto markets. Each candlestick shows four key data points: Open, High, Low, and Close (OHLC). The color and shape of the candle give traders valuable information at a glance.

Structure of a Candlestick

• Body: The thick part between open and close prices.
• Wick/Shadow: Thin lines above and below body, showing high and low.
• Color: Green (bullish) means price went up; Red (bearish) means price went down.

Types of Candles

Here are a few important types you must know:

• Doji: Signals indecision, open and close are nearly equal.
• Hammer: Reversal candle after a downtrend, long lower wick.
• Engulfing: Powerful reversal pattern, where one candle fully engulfs the previous.

Candlestick Patterns

These patterns provide hints about the market’s next move. Some key ones are:

• Bullish Engulfing
• Bearish Harami
• Morning Star
• Evening Star
• Shooting Star

Tips for Using Candlestick Charts

• Always confirm with volume and trend lines.
• Use higher timeframes (1H, 4H, Daily) for stronger signals.
• Combine candlestick analysis with indicators like RSI, MACD.
• Avoid using single candles in isolation.

Veezna Pro Tip

Mastering candlestick reading takes time, practice, and observation. Start with one pattern at a time, and backtest it using trading journals.

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